Should Allan mention the felony conviction of the accounts receivable manager?

Allan Camp was hired to conduct an audit of Renee Road Builders, a publicly held corporation in Florida. During the audit, Al determined that the accounts receivable manager was a convicted felon, the company engaged in illegal hiring practices, and the financial statements from two previous years contained significant errors.

  • Should Allan mention the felony conviction of the accounts receivable manager?
  • What are Allan’s duties as an independent public accountant if, in the course of an audit, he detects information indicating that an illegal act has or may have occurred?

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